Preparing financial statements
Studio Photography works weddings and prom-type parties. The balance of Ansel, capital was $16,000 at December 31, 2011. At December 31, 2012, the business"s
accounting records show these balances:
9
|
Insurance expense
|
$ 8,000
|
Accounts receivable
|
$ 8,000
|
|
Cash
|
37,000
|
Note payable
|
12,000
|
|
Accounts payable
|
7,000
|
Ansel, capital, Dec 31, 2012
|
?
|
|
Advertising expense
|
3,000
|
Salary expense
|
25,000
|
|
Service revenue
|
80,000
|
Equipment
|
50,000
|
|
Ansel, drawing
|
13,000
|
Owner investment, 2012
|
29,000
|
Requirement
1. Prepare the following financial statements for Studio Photography for the year ended December 31, 2012:
a. Income statement
b. Statement of owner"s equity
c. Balance sheet